The Long View of Indo-U.S. Ties
The Indian defense ministry’s decision late last month to select two non-U.S. entrants as finalists in its multi-billion dollar Medium Multi-Role Combat Aircraft competition was a major disappointment for the U.S. companies involved. The two finalists—France’s Rafale and the Eurofighter, the product of a European consortium—will now compete to win the world’s richest fighter jet contract, worth anywhere between $10 billion and $12 billion. The U.S. government, as well as the competing firms Boeing and Lockheed Martin, were surprised by the decision since they viewed the competition as the next big boost in U.S.-India defense ties. Still, it’s key for Washington to understand New Delhi’s way of thinking. It’s also key for India to understand what the U.S. wants out of a burgeoning bilateral relationship.
From America’s perspective, the Indian decision was a bit of shock. Over the past half-decade, the U.S. has invested heavily in the bilateral partnership by brokering a landmark civil nuclear deal and taking steps to facilitate greater technology transfers to India. Last November, President Barack Obama publicly voiced U.S. support for India’s desire to obtain a permanent seat on the U.N. Security Council. Each of these endeavors required the U.S. to expend significant diplomatic and political capital.
Questions will undoubtedly be raised by Washington officials regarding India’s commitment to the bilateral partnership. While the U.S. has viewed the relationship as a long-term endeavor, the fighter competition was still viewed as a bellwether of India’s future strategic direction. As U.S. Ambassador Tim Roemer said before the decision, “This will be a very important indicator of where this relationship goes in the 21st century.” As the U.S. government and industry take stock of what this decision means and how to move forward, it is important to maintain some perspective on how far the bilateral defense relationship has come in such a short period of time. In less than a decade the U.S. and India have created a partnership where India now conducts more exercises with the U.S. than any other country, and have transacted billions of dollars in defense sales to include the Indian purchase of C-130J transport and P-8I maritime reconnaissance aircraft. These sales will not only build Indian military capabilities but will also contribute thousands of jobs to the U.S. economy. The pending sale of ten C-17 aircraft will add another 22,000 jobs and $4.1 billion.